Apple Inc. (AAPL) Considered Buying Tesla Motors Inc (TSLA) [REPORT]

iphone 8 apple stockElisaRiva / Pixabay

We’ve heard suggestions numerous times over the last year or so that Apple Inc. (NASDAQ:AAPL) should buy Tesla Motors Inc (NASDAQ:TSLA), and now we know why. A report from the San Francisco Chronicle indicates that Apple actually met Tesla CEO Elon Musk nearly a year ago.

Apple talks merger with Tesla

According to the article, Adrian Perica, who is in charge of mergers and acquisitions at Apple Inc. (NASDAQ:AAPL), met with Musk last spring. The writers claim that the secret meeting was held “around the same time analysts suggested Apple acquire the electric car giant.”

German analyst Adnaan Ahmad wrote a letter to Apple Inc. (NASDAQ:AAPL) CEO Tim Cook and Al Gore, who serves on the company’s board, pushing for the company to acquire Tesla Motors Inc (NASDAQ:TSLA) in October. The secret meeting between Apple and Tesla reportedly came about six months before that letter. The newspaper’s source didn’t say what kind of reaction Musk had to the alleged acquisition offer or what kind of valuation either side might have suggested.

Many people have drawn comparisons between Apple Inc. (NASDAQ:AAPL) and Tesla Motors Inc (NASDAQ:TSLA). One of the more recent comparisons was how Elon Musk runs Tesla and how similar his management style is to the way Steve Jobs’ management style was at Apple. Others have noticed that the fans of both companies seem to have quite a bit in common.

Apple also said to be exploring medical devices

The newspaper also reported that Apple Inc. (NASDAQ:AAPL) has been exploring the world of medical devices, especially in terms of sensor technology. This is also something we have heard recently, as the tech company looks for ways to capitalize on the wearable devices market, which many are sure will become a huge industry.

Apple Inc. (NASDAQ:AAPL)’s particular interest is said to be in trying to predict heart attacks before they happen by listening to the sounds made by blood as it flows through someone’s arteries.

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About the Author

Michelle Jones
Michelle Jones was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Michelle has been with ValueWalk since 2012 and is now our editor-in-chief. Email her at Mjones@valuewalk.com.

16 Comments on "Apple Inc. (AAPL) Considered Buying Tesla Motors Inc (TSLA) [REPORT]"

  1. Not that I think it’s a bad idea for either company and their products, but I’m not sure it makes sense for Tesla. Tesla is doing great on it’s own and unless Elon want’s to focus on other things, I really don’t see him having another reason to sell Tesla.
    Apple on the other hand could incorporate their devices and tech into Tesla cars and vice versa, but I don’t see it as a financial windfall for Apple should they do that. If anything, I would think Apple’s only good reason to buy Tesla is to integrate it’s staff into Apple to further strengthen their organization.

  2. Well, here we go again…. Where do I start?

    Feasible growth? Right, because the electric car market is clearly saturated…..

    Mazda is car company. They produce cars. Tesla is a technology company. They produce a technology that happens to have wheels. Point being, you can’t value Tesla as a car company.

    Tesla’s margins are already some of the best in their industry and climbing. That doesn’t take into account their streamlined production facility either (almost the entire car, from raw material to final product is produced in their facility). Not to mention the additive manufacturing capabilities (i.e. aluminium and titanium 3D printing) their manufacturing plants have because of Space X. Lol, what other car company has a sister space company?

  3. I think Tesla cars are fantastic and extremely safe. But Apple and normal investors would be crazy to buy Tesla stock at the current levels because no amount of feasible growth can justify the current market value. You’re valuing Tesla at much more than Mazda even though Mazda sells a massive number of cars at a profit (Tesla is still struggling to turn a profit even though it is heavily subsidized by the government). Similar comparisons can be made to Ford, GM, etc. Even if Tesla some how manages to make a cheaper car that is still better than competitors 10 years down the road and is able to capture a large percentage of the market (huge assumptions there), you’re already paying what the company could be worth in 10-20 years only you’re paying today.

    Summary: Great Car, Great Company, extremely overvalued stock.

  4. jim5437532 is on every Tesla comment board with mostly the same copied and pasted message. He has most likely been burned badly as a short seller and is very angry at Tesla. He also may be a car dealer who has lost his way. As for the Tesla-Apple Talk. Tesla would not sell out this early while the stock is this cheap. Elon is staying the course until electrics are mainstream. They may have a partnership going though (think apple cash= battery factory partner which in turns also makes cheaper batteries for Apple) or maybe Tesla helps build the Apple ICar. Clearly Apple wouldnt go gas for a car and hydrogen is not an option. That leaves electric. And when it comes to Electric, there is only one car Company.

  5. Tesla should acquire Apple, hehe

  6. So according to you trolls. None of the parts that can be removed from the Tesla, are part of the car. lol

    It’s ridiculous the extent that you shills will go to try to protect a greedy corporation that skims on safety and manufactures dangers products.

  7. @Jim5437532 – Nice try. But you see, I have a Model S and I also have the Tesla mobile charging cable with the adapter in question. Contrary to what you say, the adapter is NOT part of the car. It plugs into the end of the charging cable, which then plugs into your 50A outlet. At this very moment, the charging adapter is sitting on my desk (next to my keyboard). If it were a part of the car, I would have some difficulty getting it into my home office.

    If you can substantiate more than one incident of an adapter melting, I would be interested in that information. Until then, it’s all FUD. Just like the un-named “first recall” which didn’t happen.

  8. Ring-ring-ring!!! Hello Jim, this is your broker. You need to put more money into your margin account because your TSLA short position has bought your balance below minimum requirements again.

  9. For the record you are wrong.

    The Tesla model S. has had two recalls, so far Tesla isn’t compliant with the second recall, which involved nearly all North American Teslas. The second recall of the model S. is for charger adapters that are known to overheat, melt and burn (many of which were in people’s garages). An orange county California fire department ruled that a Tesla charge connector was a possible source in a garage fire.

    The charge connector is part of the car.

    Many people are upset because these charge connectors have been overheating, melting and burning for about a year and Tesla has not resolved the problem.

  10. @Jim5437532 – For the record. There haven’t been any Tesla Model S recalls. Although there has been debate as to whether a charging adapter (which is not part of the car) should be recalled. Also, wording is very important, so as not to mislead people. You mentioned “Tesla garage fires”, as to infer that a Tesla vehicle started a garage fire. I assume you meant to say “House fires of Tesla owners”. In Toronto, the cause of the house fire has not been determined, and btw, there was also a Lexus parked in the garage next to the Tesla. Yet nobody said “Lexus garage fires”, even though thousands of Lexus vehicles HAVE been recalled for fire risk.

  11. The RATE of fires is several times (I think it was 20 times) lower than gas-powered cars. Not the number of incidents, but rate.

  12. The few incidents of fire translate to a fire/car rate that’s many times lower than gas-powered cars in the US. Unless you drive a bicycle, or take the train everywhere, you can’t find a transportation method that’s safer fire-wise than a Tesla.

    Chargers? All the “faulty”, as you say, chargers have proven to be old wiring in old houses not being able to handle a high load. All of them. The move by Tesla to replace all the chargers out there just goes to show you how much they care about their customers. They didn’t have to do it, there was no recall forced on them…it was all customers’ (and very few of them at that) issues that stemmed from living in houses with faulty wiring. Especially seeing that they’ve even offered those new chargers to people who live in new homes without any issues, so that they don’t feel left out.

    Anything else that you’d like to twist into non-existing problems? No? Ok.

    I would never buy a Tesla if it were bought by Apple and subsequently got powered by Apple, as I would be afraid that every month there’s a new vulnerability that lets hackers get into my car and crash it for me while I drive it.
    Good thing that Musk declined.

  13. No, you seem bitter. Do a more fair comparison and compare per capita….You’ll see Tesla’s are safer…Even ask customer experiences. Look at the flying Tesla incident in Mexico. They would have been dead had it been another car. If seems like your scrapping for evidence to show they are unsafe. You want them to be unsafe. In due time we will see how safe they are. Right now you don’t have enough evidence to show they are unsafe. Half the incidents you use prove they are safe.

  14. There are millions of ICE vehicles. There is only about 30,000 Tesla’s.

    Do a more of fair comparison. Tesla customers have had two catch fire only running over road debris. One caught fire and exploded after an accident. How many other EVs customers have had their drive batteries catch fire and explode? Teslas are more likely to have their drive batteries catch fire and explod in other EV manufacturers.

    Almost all of Teslas sold in the US have been recalled for safety defects. Tesla is a new manufacture and has only manufactured to about 30,000 vehicles. As Tesla gains more popularity and as they become older; there will be Tesla related deaths. Mark my words.

    I’m not bitter, you seem bitter and angry that I’m telling the truth. Tesla is unsafe junk.

  15. You seem bitter….U can only name a handful of incidents…Gas powered cars catch fire everyday. On top of that tesla sports zero deaths, zero serious injuries….Those are factual numbers. Look at the recalls this week from GM and toyota. I wouldn’t be surprised if you drove one of those vehicles.

  16. Not really a secret is it if the allegations are reported by scores of news agencies?

    Did you think companies that manufacture defective products that catch on fire and/or explode; manufacture medical devices?

    I think Tesla would be a bad liability for Apple. Tesla is a bubble that might bust finally and badly. Tesla’s false claims and disregard for safety is increasingly putting itself in a position of liability.

    Tesla has been dragging its feet on safety and the recall. Tesla manufactures more excuses, then cars.

    The most recent Tesla garage fire to hit the news was in Toronto. The car supposedly wasn’t even plugged in, so the charging system isn’t likely to be a source. I’m hoping to hear reports from the fire departments investigation, because I don’t trust Tesla’s “fire investigations”, which seem more like coverups.

    There has been at least five Tesla fires. Two Teslas caught on fire after only running over road debris. One Tesla caught on fire and exploded after being in an accident in Mexico. There was a Tesla fire in a California garage, that the Tesla charger connection was ruled as a possible source of the fire by the fire department. Recently there was a Tesla garage fire in Toronto, that so far I haven’t heard the fire department give a ruling. Arguably there has been scores, possibly hundreds of minor Tesla fires. There has been a plethora of Tesla charge connectors that have overheated, melted and burned. Though many Tesla shills will argue that they are not fire. Categorically and scientifically they are often classified as fire. Rapid oxidation or rapid decomposition is often classified as fire. Like the metaphor; where there is smoke, there is fire.

    A few months ago there was a Tesla related garage fire in California that the fire department ruled that the Tesla charging system was a possible source of the fire. The suspect portion of the Tesla charging system that the fire department in California determined was a possible source of the California garage fire, is also suspected in many other Tesla charger reported cases that Tesla charge connections have overheated, melted and burned. Tesla issued a software “fix”, however Tesla charge connectors have continued to overheat, melt and burn despite the so-called “fix”.

    The Tesla model S. still has defects that make it a fire hazard. Tesla charger connections are still overheating, melting and burning. Tesla batteries are poorly located and poorly protected. Tesla is Junk.

    On 1/9/2014 Elon Musk said that replacement adapters that are part of the recall would be mailed out within two weeks. A month later Tesla customers have still not received the replacement adapters that are part of the Tesla model S. recall.

    Several people have been injured by faulty Tesla charge connectors. Tesla is big on making promises and hype, but short on delivery. Tesla needs to start making safety a top priority. Tesla needs to stop playing blame games and games with semantics. Tesla needs to stop lying. Tesla needs to be proactive instead of reactive. Tesla is being a follower of technology, rather than a leader. Tesla is a greedy corporation that has a disregard for safety. The Tesla model S. is an E-Pinto.

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